Sellers hesitant to lower house list prices: Toronto Market Dilemma

Although some segments of the Toronto Real Estate market are still very hot, most markets have experienced some cooling off. Despite lower interest rates and limited supply prices have seen a drop.

A common issue that I am running into is sellers hesitance to adjust prices to reflect the new pricing reality. I don't blame them.

The logic is simple. If a Seller lists at the higher price and it is still within reason for the neighbourhood, house style, and condition, then buyers will no doubt submit offers that reflect today's slower market. It may look like a low offer but that is not in fact the case.

However, in the absence of multiple offers, pricing 'on the money' seems to be a frustrating experience for sellers because some Buyers and their agents take the already adjusted price as an invitation to start bidding even lower. This has happened within my office on numerous occasions.

Often this stirs resentment from the Sellers who feel they are being lowballed. For me it is a little embarrassing since so called 'professionals' are not doing their research and recognizing that prices have already been adjusted.

Of course I could be willfully naive. The lowball is after all a  negotiating strategy (a starting position which will immediately stir resentment within the negotiation).

And so pricing,  more than ever,  remains an uber important component in listing strategy.

David Smeriglio
david@soldhabit.com